Gen Z may have a reputation for delaying adulthood milestones like moving out on their own, getting married and having kids, but saving for retirement is one area where the youngest working adults may be outperforming their elders.
Gen Z is the generation most likely to be on track to retire successfully, with 47% of workers aged 24 to 28 currently poised to have enough money to maintain their current lifestyle in retirement, according to a recent study by investment management firm Vanguard.
In total, 42% of all U.S. adults are on track to have enough retirement savings, Vanguard finds. Generationally, millennials come closest to Gen Z’s preparation with 42% of those aged 29 to 44 on track, followed by 41% of Gen Xers (aged 45 to 60) and 40% of baby boomers (aged 61 to 65).
Vanguard examined data from the Federal Reserve’s 2022 Survey of Consumer Finances for over 2,200 U.S. households to estimate the percentage of each generation on track for a successful retirement, defined as having enough money — in most market or longevity scenarios — to maintain their pre-retirement lifestyle throughout retirement.
The study focused on “younger baby boomers, Gen X, millennials, older Gen Z individuals” since those cohorts are most likely to be part of the “working population.”
